Page 96 - Records of Bahrain (5) (ii)_Neat

410 Records of Bahrain

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V. Final Remarks*
It lo unlikely that the flow of receipts
from oil royaltioo v/illbo a steady figuro overy
year and the length of life of the field, opart from
the guoao work invo3.vcd, clearly dependo on the vol­
ume of oil extraoted annually whioh in turn depends
on markets and numerous other factors* Thus some

adjustment will b e necessary overy year in the
amount to bo invested, but it seems clear that the
figures to be almod at arei-
1* Diversion of a maximum of Rs. lakhs
annually from royaltioo for current expenditure,
until increasing receipts from investments make
it possible to effect a progressive reduction in

this figure*
2* Investment of Re* 14 lakhs annually as a
minimum average figuro. It may be difficult to
reach this figuro in the first year or two, but ^
should be exceeded by a progressively increasing

sum thereafter as the flow of interest accelerates.
At this average, the requisite reserve figuro will
be reaohod in juet over 13 yoars, thus providing
an additional factor of safoty,
3. At a fairly oarly otage it might be con­
sidered whether soy Rs. 20 lakhs or the surplus of
Ro* 49 lakhs assumed in IV (6) above should not be
anticipated and invested in agriculture (improvement

and conservation of land and water) in the definite
expectation of - say - a 2return. This might
involve* some small postponement of "security invest­
ments" but not necessarily if oil production exceeds

average in the early years, ae appoara probable, Even
so, there should be a balance of Re. 29 lakhs which
can be used for useful purposes such as macadamising
all/-